IDEA is looking good with strong consolidation prior to 13 & 15
Updated
Idea's chart is looking very simple & clean for further up move.
Why I choose this trade:
Technical Analysis
Market Analysis
I strongly believe that shutting down operation is not solution here because the user base is still very large & it will affect on many people.
So best option could be paying dues in installment which Idea is asking.
Why I choose this trade:
Technical Analysis
- Idea shot up from 6 to 12.55 within few trading days.
- It cooled down to the 9 after big move and found very good support at 8.50 - 9
- Since last few trading session it is ranging between 9 to 11 but not breaking 8.50 except 1 trading session.
Market Analysis
- Idea told to Supreme Court that they are no in position to pay dues upfront.
- Government is not in position to bail out at all due to Corona Crisis.
- Declaring as bankrupt is the worst case scenario because many banks having exposure in Idea.
- Most important taking out Idea from the Telecom leads to fear of Monopoly.
I strongly believe that shutting down operation is not solution here because the user base is still very large & it will affect on many people.
So best option could be paying dues in installment which Idea is asking.
Trade closed: stop reached
Stop loss hit.
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